Free HR calculator
Cost of Employee Turnover Calculator
Losing an employee costs far more than the empty seat. Add the separation, the open role, recruiting, onboarding, and the slow ramp of a new hire. The total usually runs 50% to 200% of salary. Here is what one departure really costs you.
Before you start
What you will need. Annual salary of the role, Departures to model, Exit and admin time, Accrued PTO payout
The role
Separation
Vacancy while the role is open
Advanced options
Recruiting the replacement
Onboarding and ramp-up
Cost per departure
Where the cost comes from
The method
What goes into the cost of turnover
Research from Gallup and others puts the cost of losing an employee at roughly one half to two times their annual salary. US businesses lose an estimated one trillion dollars a year to it. The total breaks into five buckets.
How this is calculated
Separation
The time HR and the manager spend processing the exit, plus accrued paid time off you owe and any severance.
Vacancy
While the seat is empty, work goes undone or gets covered by others, often on overtime. A common estimate is about half the role’s daily pay for every day it stays open.
Recruiting
Job ads, agency or recruiter fees, the hours your team spends interviewing, and background checks and assessments.
Onboarding and ramp-up
Training time and materials, equipment and setup, and the productivity gap while a new hire ramps to full speed. That ramp is usually the single largest cost, and it grows with the seniority of the role.
Carry this into the decision
Keep the full breakdown in Excel
The in-depth Excel version is a file you keep: set your assumptions once, cost each role in its own copy, and read open formulas instead of a black box.
$29. 30 days. Reply to your receipt or email support@truestephr.com for a full refund. No form or explanation is required, and you keep the files.
Related
More free tools and the notes behind them
Put your own numbers in and read the result on screen.
Put your own numbers in and read the result on screen.
Put your own numbers in and read the result on screen.
Put your own numbers in and read the result on screen.
Put your own numbers in and read the result on screen.
Put your own numbers in and read the result on screen.
This tool estimates from the figures you enter. It is general information rather than legal, tax, or accounting advice, so check the result against your own records before you rely on it.